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Brexit May Erase $1.6 Trillion From Global M&A, Study Says

A disorderly exit by the U.K. from the European Union could wipe as much as $1.6 trillion from future mergers and acquisitions, a new study says.

The uncertainty created by the U.K. June 23 vote to leave the European Union has already had an impact. Global M&A so far this year is down 16 percent to $1.5 trillion from the same period in 2016, according to data compiled by Bloomberg. Stock market sales have declined 63 percent over the same period to $206 billion, the data show.

Yet it isn’t all gloom and doom. In the month since the U.K.’s referendum, about $103 billion in deals involving European companies have been announced — including SoftBank Group Corp.’s $32 billion bid for Cambridge, England-based ARM Holdings Plc and Paris-based Danone’s agreement to buy WhiteWave Foods Co. — according to data compiled by Bloomberg.

“In the last few days we have seen evidence that the M&A market in the U.K. won’t come to a crashing halt even if it won’t be at its previous pace,” said Tim Gee, London merger partner at Baker & McKenzie. “London will also retain a remarkable concentration of financial, legal and economic talent.”

The impact of Brexit won’t lead to a global “Lehman moment,” and the study’s central scenario shows global merger activity “only modestly down for the next two years before fully recovering,” the report said.

In a similar report in 2015, Baker & McKenzie forecast that fallout from a Greek exit from the euro could wipe as much as $1.4 trillion from future M&A.

Under the more adverse scenario, Monday’s study forecast a significant slowdown in Euro-zone growth and a 40 percent drop in mergers in the region, excluding the U.K., in 2017, compared with if the country had voted remain.

 

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To Be a Better Leader, Learn This FBI Hostage Negotiation Tactic

CFOs have to be effective leaders and a key to being a better leader is being a good listener. In my experience as a consultant and advisor, I have to listen to the client before I can formulate strategies and ideas to help the client.  I have realized that in the current environment, a lot has been written about being an effective leader, and a key ingredient is communication skills.  Equally important is the ability to listen to the other person!

The following article appeared in Medium, and I think the FBI tactic mentioned in the article is worth emulating by current and aspiring CFOs.

To Be a Better Leader, Learn This FBI Hostage Negotiation Tactic

Oracle to buy NetSuite for $9.3 billion to gain cloud computing clout

Oracle just announced that it is buying NetSuite, which would help Oracle gain market share in the fast cloud computing business.  NetSuite is fairly popular, and was one of the first companies offering financial  & resource planning software through a subscription model.  It is one of the first truly “cloud” computing company.  With NetSuite, Oracle will be able to compete better with companies like SAP & Sales Force.

Netsuite would also benefit from Oracle’s global reach and scale, and hopefully, will now be available in other markets.  A large growing market like India would have great potential, and it is about time too.  The Indian homegrown ERP landscape has only a handful and it could be serious competition to Tally.  Having used NetSuite and Tally, I can definitely say that NetSuite is more user-friendly.

Oracle Buys NetSuite in Deal Valued at About $9.3 Billion

Here’s what great companies to work for have in common

I have always believed that a key element of organizational success is happy and motivated employees.  My personal experience with several clients and employers indicate that Indian companies are still not paying too much attention to this, with the exception of a handful.

So what is that great companies are doing to retain and empower employees?  Salary is important, but other equally important factors include a fun and engaging culture, trusted colleagues, management treating employees with respect and work being meaningful.

The following article is an article written about US companies, but the qualities apply to all!

Here’s what great companies to work for have in common

CFO Article – 8 Keys to Becoming the CEO’s Trusted Strategic Adviser

CEOs need a CFO who can help management confidently take new, calculated risks and strategize ways to grow the business.

A CFO needs to be more than a beancounter.  I still see companies hiring beancounters, may are great beancounters and accountants, but have little experience and exposure to working with the CEO to help navigate the right course for growth and balancing the risks and rewards inherent with various initiatives.

This article from CFO.com is enlightening.  I look forward to your comments and feedback.

 

8 Keys to Becoming the CEO’s Trusted Strategic Adviser